Tripadvisor (TRIP) - Q2 2025 Earnings Call
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Earnings Call – Q2 2025
Date: August 7, 2025
Executives Present:
Matthew Goldberg – President, CEO & Director
Michael Noonan – Chief Financial Officer
Angela White – VP of Investor Relations
Financial Performance
Consolidated revenue: $529M, +7% YoY or +5% constant currency.
Adjusted EBITDA: $107M (20% margin), exceeded expectations due to marketing efficiencies at Viator.
Viator:
Experiences booked +15% YoY.
Revenue $270M (+11% YoY).
Adjusted EBITDA $32M (12% margin, +800bps YoY).
GBV $1.3B (+13% YoY).
Brand Tripadvisor:
Revenue $242M, down 3% YoY.
Hotels revenue $152M (+1% YoY).
Media & advertising revenue $36M (-13% YoY).
Adjusted EBITDA $66M (20% margin).
TheFork:
Revenue $54M (+28% YoY, +22% cc).
Adjusted EBITDA $9M (16% margin, +900bps).
Guidance and Future Trends
Q3 2025 Outlook:
Revenue growth 4–6%.
Adjusted EBITDA margin 19–21%.
Viator: bookings +16–18%, revenue high single digits. EBITDA margin ~14–16%.
Brand Tripadvisor: revenue -3% to -4%, EBITDA margin 22–24%.
TheFork: revenue +25–27%, margin “high teens.”
Full Year 2025:
Revenue growth 5–7%.
Adjusted EBITDA margin 16–18%.
“Neutral” EBITDA impact from shifting profit between brands for coordinated growth.
Capital Allocation
Cash & liquidity:
Total cash $1.2B.
Free cash flow $177M in Q2 (vs. outflow last year due to IRS settlement).
Liberty TripAdvisor merger: $411M total cash outlay completed in Q1–Q2 2025.
Share repurchases: 2.8M shares bought back in Q2 for $40M at avg. price $14.22.
Debt: $350M Term Loan B proceeds raised Q1 2025 to repay April 2026 convertible notes.
AI and Technology
AI adoption across brands:
Tripadvisor: powering smarter search, navigation, and discovery.
Viator: AI improves booking funnel and search relevance.
TheFork: testing conversational AI for restaurant matching.
AI assistant and trip builder integrated into Tripadvisor app with personalized itineraries and review summaries.
Internal AI: increasing automation in customer support, content moderation, and productivity.
Macro & Demand Trends
Experiences: fastest-growing travel category; bookings +15% in Q2.
North America: stable sequential growth.
Europe: accelerating bookings growth.
App adoption:
Viator: app bookings outpacing other channels.
TheFork: nearly 80% of bookings through app, mostly repeat diners.
Tripadvisor: growing app users and ARPU, aided by rewards program.
Traffic headwinds: Free traffic continues to decline at Tripadvisor, impacting revenue mix.
Competition & Strategy
Shift to coordinated marketing across Tripadvisor and Viator to optimize by geography/channel.
Partnerships: TheFork launched Mastercard dining experiences; Vodafone partnership also contributing.
SEO + AI search positioning: Tripadvisor aiming to be key partner in AI-driven discovery (ChatGPT, Perplexity, evolving search engines).
10 Notable Quotes
“Group revenue grew 7%… to $529 million at the upper end of our range. Adjusted EBITDA of $107 million or 20% of revenue exceeded our expectations.”
“Over the last 12 months, Viator and TheFork represented nearly 60% of our revenue, growing at an 18% CAGR.”
“Experiences booked grew 15% and Viator’s adjusted EBITDA more than tripled.”
“Nearly 80% of TheFork bookings now come through the app and from repeat diners.”
“Brand Tripadvisor revenue was $242 million, and adjusted EBITDA was $66 million or 27% of revenue.”
“We repurchased 2.8 million shares at an average price of $14.22 per share for a total of $40 million.”
“For Q3, we expect consolidated revenue growth of 4% to 6% and adjusted EBITDA margin of 19% to 21%.”
“We’re not only successfully integrating AI into our products, we’re actively shaping how AI will define the future of travel.”
“Our trusted brands, proprietary data and scale also make us a critical partner in the emerging AI search ecosystem.”
“We believe Tripadvisor Group is exceptionally well positioned to win in the evolving travel landscape.”
Q&A Highlights
Richard Clarke (Bernstein):
Q: Will free traffic headwinds delay Brand Tripadvisor stabilization in 2026? Engagement with new shareholders?
A (CFO Noonan): Too early to call 2026, headwinds persist but focus remains on efficiencies.
A (CEO Goldberg): Engages constructively with shareholders, but no specifics shared.
Nafeesa Gupta (BofA):
Q: Mix of 3P vs. Tripadvisor/Viator origin for experiences? Confidence in Q4 reacceleration despite tough comps?
A (CFO Noonan): 3P channel (OTAs, agents) is additive and profitable; majority revenue still Viator > Tripadvisor > 3P. Bookings pipeline supports Q4 growth.
A (CEO Goldberg): Cross-brand synergies and AI will drive uplift.
Vince Ciepiel (Cleveland Research):
Q: Updates on Tripadvisor app monetization and expansion?
A (CEO Goldberg): App redesigned as “world’s best travel companion,” integrating AI trip builder, in-app bookings, and rewards. U.S. launch live; will roll out globally.
Q: Contribution split for 2025 guidance between Viator and Brand Tripadvisor?
A (CFO Noonan): Brand Tripadvisor facing more free traffic pressure; Viator growth strong but revenue mix diluted by 3P. Overall guidance reaffirmed.
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